David Y. Ige

HONOLULU – The Centers for Medicare and Medicaid Services (CMS) found the Hawai’i Health Connector (HHC) to be non-compliant with the Affordable Care Act (ACA) earlier this year.  The non-compliance included unresolved IT issues, a non-integrated eligibility enrollment system and lack of financial sustainability.

CMS contacted the state administration about these issues.  Since February 2015, representatives of Governor David Ige’s administration have been meeting with HHC to determine how to address non-compliance.

Concurrently, CMS restricted grant funding to HHC and is providing limited funding pending approval of a draft plan being developed by the state and HHC.

Recent news reports based on confidential working draft documents have misrepresented ongoing discussions between the federal government, the state administration and HHC.

If Hawai’i’s plan is not acceptable to CMS, Hawai’i risks losing $1 billion in matching federal Medicaid funds.

“Governor Ige and his administration will negotiate the release of federal grant funds to ensure compliance with the ACA in time for the Fall 2015 open enrollment,” said Deputy Chief of Staff Laurel Johnston.

“Our first priority is to ensure the continuity of coverage for the 37,000 to 40,000 Hawai’i residents who are receiving health insurance coverage through HHC,” said HHC Executive Director Jeff Kissel.

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